The Town of Parker has issued a letter reminding business owners within the Town limits that the maximum retail sales tax they can charge is 9.6 percent.
The letter is dated Sept. 22. The letter is in response to some confusion caused when a local news Facebook page claimed the total sales tax had been increased to 11 percent.
Several calls about this claim were made to the Parker Regional Chamber of Commerce & Tourism received several calls about this posting, and they reached out to the Pioneer. The Pioneer contacted Town Manager Lori Wedemeyer. She said she knew nothing about this or where that Facebook page got that figure from.
Wedemeyer said the Town of Parker cannot raise sales taxes without going through a state-mandated public process. She said the Colorado River Indian Tribes do have a 2 percent sales tax, but that can only be charged by businesses on Tribal land. This tax cannot be collected within the Town of Parker.
Of the sales tax that can be charged, 5.6 percent of every dollar goes to the State of Arizona. The Town of Parker’s sales tax is 2 percent. The La Paz County Excise Tax is 1 percent, and the County Judgement Tax is 1 percent.
The Town has budgeted $1.2 million in revenue from the sales tax for the current fiscal year. This down from the $1.35 million budgeted for last year because local retail sales have been hurt by restrictions from the coronavirus pandemic.
The following is the text of the Town of Parker’s letter:
Sept, 22, 2020
To all Town of Parker businesses:
The Town of Parker would like to remind everyone that the Town of Parker is under Arizona law and we have to follow the following information.
In the Town of Parker, the total tax rate for retail is 9.6 percent. This figure is broken down by the following:
State of Arizona: 5.6 percent
County Excise Tax: 1 percent
County Judgement Tax: 1 percent
Town Sales Tax: 2 percent
If you are charging anything more than that, you are incorrect. The Tribes do have a 2 percent sales tax they charge businesses on Tribal land, like Walmart and Safeway.
The Tribal tax is not applicable in the Town of Parker limits.
All sales taxes collected by businesses within the Town of Parker is paid to the State of Arizona. The State then audits and distributes the taxes accordingly.
These are the only taxes businesses within the Town of Parker are to be collecting. The Tribal tax should be collected from businesses on Tribal land.
If you have any further questions, please feel free to contact the Town of Parker.
Town of Parker
Mayor and Common Council
Town Hall is located at 1314 11th Street. The phone number is 928-669-9265.